There is fierce competition among blockchains supporting non-fungible tokens. It is unlikely any network will ever overtake Ethereum, but every other spot in the top five is up for grabs. Solana clings to second place, but its sales volume decrease is problematic. Cardano is making strong moves to solidify its place in the rankings.
It is a well-known secret in crypto that bullish markets usually result in fewer people dealing with NFTs. When Bitcoin and Ethereum are bearish, non-fungible tokens become the safe haven version of the industry. That momentum reverses when the crypto asset markets move up ever so slightly. The past week has been no different, with four of the five top chains noting steep TX decreases. However, there are a healthy amount of NFT buyers, which is promising.
Ethereum still dominates the NFT space, with nearly $200 million in weekly sales. That is an increase of over 12%, even though the overall transaction count has diminished by over 14%. The big development is how the number of on-chain buyers has jumped by over 36%. Whether people buy bargains or try to diversify their portfolios is unknown. However, it is a remarkable development, given the market conditions.
Ethereum’s the only chain in the top three noting a sales increase. Solana (-20.4%) and Cardano (-2.75%) see a retrace. Those networks also lost more transactions than the previous week, at -33.46% and -17.73%, respectively. A healthy increase in buyers offsets that. Solana saw nearly 74% more buyers, whereas Cardano’s numbers increased by almost 41%. Very respectable developments across both networks.
In addition, it is remarkable how Cardano has become a top-tier network for non-fungible tokens. Although the ecosystem often gets a neutral or even negative reputation in crypto media, things look up. However, sustaining a weekly volume of over $3 million in NFT sales is the first objective. That may be easier said than done, as competitors are moving up.
Beyond Ethereum, Solana, and Cardano are other networks competing for NFT traction. One would expect to see BNB Chain, WAX, or even Tezos in the top five. None of them are, primarily due to very low sales volumes. Instead, we see ImmutableX and Polygon. The overall volume for ImmutableX rose to over $2.8 million last week. Moreover, its transaction count rose by over 38%, despite having only 10.7% more NFT buyers.
Polygon has lost some ground despite being considered a major network for non-fungible tokens. Its weekly volume rose by almost 23.5%, but the transactions dipped by over 47.7%. In addition, noting over 55% more buyers is positive, although sustaining such growth may be tricky. Overall, the NFT landscape looks like it’s in a good place. However, there is more work to do.
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